Ram and Shyam form a partnership (with Shyam as working partner) and start a business by investing Rs. 4000 and Rs. 6000 respectively. The conditions of partnership were as follows:
If Shyam’s share in a particular year was Rs. 367000, which option indicates the total business profit (in Rs.) for that year?
Explanation:
For first Rs. 200000, Shyam gets, 6000/(4000 + 6000) × 100 = 60% of the profit.
For next Rs. 200000, he gets 20% + plus 60% of the remaining profit.
i.e. 20% + 80 × 0.6% = 68%
Similarly, for a profit margin greater than Rs. 400000, he will get, 35% + 65 × 0.6% = 74% of the profits beyond Rs. 400000
Now, for a profit of first Rs. 400000, Shyam will receive 200000 × (68 + 60)/100 = 256000
But Shyam earns a total profit of 367000.
Let total profit earned by them be Rs. 400000 + x.
Hence, Shyam received 367000 – 256000 = Rs. 110000 from Rs. x profit.
i.e. Rs. 110000 is 74% of x.
Hence, x = 110000/0.74 = 150000
Hence, total profit earned by them = 400000 + 150000 = Rs. 550000
Hence, option (d).
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